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Will Texas Be the Next Silicon Valley?

Tech Industry Exodus from Silicon Valley to the Lone Star State

You can’t talk about technology without mentioning Silicon Valley. For many years, the southern San Francisco Bay Area has been the home of some of the world’s top tech companies including Google, Tesla, Oracle, Intel, Apple, and Facebook. Silicon Valley has also seen the birth of many technological advancements and the meteoric rise of many tech entrepreneurs.But recently, there has been a shift away from what has been known as the tech hub of the world. In 2019, most of the 1,800 companies that moved their headquarters out of California chose Texas as their next base of operations. More businesses are moving to Texas, including tech giants, or have announced that they are going to move to the Lone Star State in the near future. So the question is: will Texas be the next Silicon Valley?

Tech Companies Are Moving to Texas

Last year, several large tech companies announced their plans to leave Silicon Valley for Texas. Hewlett Packard Enterprises already has an office in Houston, but it has announced that it will be moving its headquarters to Texas after its new campus is done. Oracle also has similar plans, although it will still keep its office in California. FileTrail, which provides records management software for law firms, has already moved to Austin while the online survey software company QuestionPro has announced its move to the same city.Tech entrepreneurs are also relocating to the Lone Star state, which means that they could be moving their companies soon. Tesla and SpaceX founder and CEO Elon Musk announced that he relocated to Texas late last year to be near the facility that he’s currently building in Austin. Dropbox CEO Drew Houston also recently bought what will be his permanent home in Austin.

The Reasons Behind the Move

While Silicon Valley will remain the technological hub of the United States, several tech entrepreneurs have their own reasons for relocating their companies to Texas. Adam Bauer, the spokesman for Hewlett Packard Enterprise explained: “We made the decision to relocate our headquarters to the Houston area in response to business needs, opportunities for long term cost savings, and team members’ preferences about the future of work.”Austin also offers a favorable environment for tech entrepreneurs and their employees who want to take a breather from the hustle of California. According to the Austin Chamber of Commerce’s president and CEO Laura Huffman, “There are a lot of things about this community—its’ got a great local flavor, a great music scene, it’s an outdoors city.”

The Takeaway

The race to becoming America’s top technological hub may be a long one for Texas. But with 35 companies relocating or opening new facilities in the state in 2020 alone, there is a strong potential for Texas to be the next Silicon Valley. But we also cannot deny the fact that technology already has its roots in California’s Redwood City. We can only look forward to what the future brings for tech in these cities.

If your tech business is joining the myriad of companies moving to the Lone Star State, you should know how to get a high-risk merchant account in Texas and set your business up for success. Contact us today to get started opening a high-risk merchant account with a trusted credit card processor.

( President )

My interest in the financial world started to blossom in High School. However, my parents tell me I use to watch financial programs before the age of 5. So, I guess I was born with the Financial bug. In high school I was accepted into their Finance Academy, which I attended for 4 years. In addition to graduating high school, I accumulated a substantial amount of financial knowledge few people experience at such a young age. During which time, I won the State of Florida Stock Market Contest and I also finished in the top 100 in the CNBC stock market contest which had over 1 million participants throughout the country (including some of Wall Street’s elites) with a take home prize of $1 million. These achievements allowed me to be invited to many shows and events with top people in their fields of business from around the world.

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